TIFIA provides federal credit assistance for eligible transportation projects through loans and other credit instruments under program requirements.
Definition
The Transportation Infrastructure Finance and Innovation Act program, known as TIFIA, provides federal credit assistance for eligible transportation projects. Assistance may take the form of loans or other credit instruments, subject to statutory requirements and program terms. Eligibility, application steps, repayment, security, and project requirements depend on the applicable program materials and financing arrangement. A civil engineering firm may support a sponsor with project development or technical work where a financing plan affects project sequencing or delivery. TIFIA is not a grant, and credit assistance generally involves repayment and specified conditions. It also does not replace the sponsor’s responsibility for project approvals, procurement, or technical decisions. Owners can review U.S. Department of Transportation program information and Federal Highway Administration resources on federal transportation programs.
How owners use it
- An owner asks whether a client is considering credit assistance or grant funding when assessing a transportation pursuit.
- A project lead coordinates technical deliverables with financing milestones included in the sponsor’s schedule.
- A $4 million loan repaid over 20 equal annual principal payments would average $200,000 of principal per year: $4,000,000 ÷ 20 = $200,000.
- A firm separates its consulting scope and fee from the client’s financing decision and repayment obligations.
